Supervisor of Banks: Repay Debts to the Last Shekel

Dudu Zaken, Supervisor of Banks at the Bank of Israel, told the Knesset Finance Committee, Tuesday morning, that there is a problem of concentration of credit to large entities and a problem with refinancing. Expressing his opposition to "haircuts", in which percentages are taken off debts, Zaken said, "Debts must be paid to the last shekels and ways must be found to collect debts, and it makes no difference if the business is big or small."

Earlier the Supervisor of the Securities Authority told the committee he was troubled at the banks' refinancing arrangements, explaining, "Our authority is to give the investor the transparency that he won't be harmed, and on the other hand, we understand that every business activity carries a risk." The committee expressed outrage at the banks for not sending senior representatives.